UPDATE 2-Domino's profit beats on tighter cost controls

Domino's, which competes with Yum Brands Inc's (YUM.N) Pizza Hut and Papa John's International Inc (PZZA.O), said net income rose to $17.8 million, or 31 cents a share, in the third quarter ended Sept 6 from $10.1 million, or 17 cents a share, a year earlier.

Excluding a $14.3 million pretax gain from retiring debt, profit was 17 cents a share, topping the analysts' average estimate of 15 cents, according to Thomson Reuters I/B/E/S.

The pizza chain, which benefited from reduced debt levels and decreased overhead costs, said lower interest expense pushed profit up by about 3 cents a share.

Revenue fell 6.5 percent to $302.7 million. Same-restaurant sales, a key indicator of performance, were flat in the United States and up 2.7 percent internationally.

The Ann Arbor, Michigan-based chain now appears to be outperforming rival Pizza Hut in the United States. The Yum unit, which is seen as a more expensive option than Domino's, recently reported a 13 percent decline in U.S. sales at established restaurants for the third quarter.

Sales at established U.S. Domino's restaurants were down 2 percent at company-owned locations, but rose 0.3 percent at those operated by franchisees.

Domino's shares were unchanged at $9.37 in trading before the market opened.